Section 15. Regulation of premiums under life policies. (INSURANCE ACT, 1963

(P.M. ACT 1 OF 1963)
INSURANCE ACT, 1963

PART II - CONDUCT OF INSURANCE BUSINESS
Miscellaneous requirements as to conduct of business

Section 15. Regulation of premiums under life policies.

(1) A Federation insurer shall not issue a life policy of any description being a Federation policy, if the premium chargeable under the policy is not in accordance with rates fixed with the approval of a qualified actuary or, where no rates have been so fixed for policies of that description issued by the insurer, is not a premium approved for the policy by a qualified actuary.

(2) An actuary shall not for the purposes of this section approve a premium for a policy or a rate of premium for any description of policy, unless he is satisfied that it is suitable and in accordance with sound insurance principles.

(3) An actuary in giving his approval in respect of any description of life policy shall have regard to the maximum rate of commission proposed to be paid or allowed to any person in respect of that description of policy, and shall certify the said maximum rate.

(4) Where in the case of any insurer a rate of premium is approved by a qualified actuary for any description of life policy, the insurer shall not, except with the approval of the Commissioner, pay or allow in respect of any policy of that description a commission at a rate greater than the maximum rate of commission certified by the actuary.

(5) The Commissioner may by notice in writing require any Federation insurer to obtain and furnish him within a time specified in the notice with a report by a qualified actuary as to the suitability of the rates of premium for the time being chargeable by the insurer for any description of life policy, and if the actuary considers that the rates are not suitable or not in accordance with sound insurance principles, a report as to the rates of premium which the actuary approves for that description of policy; and for the purposes of sub-section (1) regard shall be had to any such report to the exclusion of any previous approval or report.

(6) For each occasion on which an insurer issues a policy or allows a commission in contravention of this section, the insurer shall be liable on conviction to a fine of one thousand dollars.